With a total market size of $19.3 billion in 2022 and 21,848 spas in the US, the average turnover for a spa is about $880,000 per year. What does this means for your business? How much profits can you generate with a day spa?
The revenue and profit of a day spa franchise owner vary based on factors like location, services, skills, and clientele. Successful owners can earn between $80,000- $100,000 annually. For medical spa franchise owners, the income can range from $250,000- $300,000 per year. Are spas a good investment?
The average profit margin of a spa can vary significantly depending on various factors such as location, operating expenses, overhead costs, and payroll. According to American Spa, the average profit margin for medical spas and day spas should aim for a profit margin of approximately 10% to 15%.
Spa owner salary
Spa owners have the potential to earn more than salaried managers, but their income depends heavily on the success of the business. On average, a spa owner makes $89,691, with those owning highly successful and well-established spas possibly earning up to $200,000 annually.
The study reveals U.S. spa industry revenues raised 2022's record $20.1 billion to a new high mark of $21.3 billion in 2023—a year-over-year increase of 5.7 percent. Average revenue per visit also climbed by more than five percent, from $111.5 to $117.2.
The average profit margin of a spa typically ranges between 5% and 20%, with some high-end or luxury spas potentially reaching margins of 25% or more.
The common accepted standards for one turnover are: Pools - 6 hours. Spas - 30 minutes. Wading pools - between 1 and 2 hours.
Med Spas: Often generate higher revenue, ranging from $500,000 to $2 million or more per year, due to the higher cost of services like Botox, laser treatments, and other advanced procedures.
On average, it costs between $155,000 and $552,000 to open a new spa, which includes securing space, purchasing equipment, paying for licensing, hiring employees, marketing, and more.
With a total market size of $19.3 billion in 2022 and 21,848 spas in the US, the average turnover for a spa is about $880,000 per year. What does this means for your business? How much profits can you generate with a day spa?
The standard hospitality rate for massage tipping is 20 percent. For example, if a massage or body treatment costs $100, a 20 percent tip would be $20. "You can tip more or less depending on how satisfied you were with the massage," says Schweitzer, Don't forget to simply say thank you.
In general, most people ask between 25–35% of what they originally paid for the spa.
Rural Areas: Spas in major cities often charge more due to higher operating costs and demand. A luxury spa in Houston or New York will likely cost more than a similar one in a smaller town. Destination Spas: These are typically more expensive as they offer a full wellness retreat experience, often in scenic locations.
For portable spas it is recommended that the filtration cycle run between 4 - 8 hours per day, depending on your usage and swim spas should run between 12 - 16 hours per day, depending on usage.
Depending on your area and the services you intend to offer, you may need to apply for a variety of licenses and permits before you can open a spa. Normally, you'll require a cosmetology or esthetician license, a business license, and a health and safety permit.
Body treatments may include sauna, whirlpool, jet bath, steam room, massage, mud bath, salt scrub, seaweed body wraps, clay or herbal body masks, reflexology and waxing. Day spas also usually offer nail services, such as manicures, pedicures and paraffin treatments.
Here are some ballpark figures based on average usage and electricity rates: Summer (warmer months): For a well-insulated premium spa, you can expect to pay between $30 and $50 per month on electricity. Winter (colder months): In colder regions, monthly costs can rise to between $60 and $80 per month.
The estimated total pay for a Spa Owner is $128,701 per year, with an average salary of $95,411 per year. These numbers represent the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
Finance, law, real estate, health care, and software development are among the most profitable industries in the US. If you're looking to make as much money as possible, consider starting a legal services business, a brokerage, a health care company, or a software-based venture like a virtual assistant business.
Utilise Off-Peak Power Hours
Often these off-peak hours will be early in the morning or late at night when fewer people are using electricity. Setting your spa via the control panel to heat your spa during this window to significantly reduce your monthly power bill.
Massage also helps improve flexibility by loosening up muscles that may have become stiff over time. This is the most popular type of spa service, and there are many different types of massages from which you can choose.
Running a spa requires more than just being a skilled practitioner. You will also need a solid business plan to help you identify your potential costs and create a roadmap that you can follow. Below are some of the key decisions a business plan can help you make.
Industry experts estimate the average day spa owner salary is $80,000 per year or more, with many owners earning more than $100,000 annually. MassageLuXe stands out from the average day spa. As an owner, you have a chance to build wealth.